Please could someone give advice

Wendy1_2

My 16 year old daughter has just started a weekend job, Saturdays and Sundays.
She is still a student.
She will not earn enough to have to pay tax or national insurance.
She would like to open a savings account, putting in about £50 per month.
How will she get the interest paid free of tax.
I know she can open an ISA now but some of the ordinary savings accounts interest rates are better gross.
How does she get the interest paid without the tax coming off and what do you think is the best savings account for this
Many thanks
Wendy :T

magentadreamer

When she opens an account she should ask for a form which will allow her to recieve gross interest - R8 something springs to mind but can't remember!

gt94sss2

To get interest paid gross, your daughter needs to fill in a R85 form and hand it into the bank/building society (who will have copies so no need to print it out)

Regards
Sunil

HGLTsuperstar

Depending on how long she's planning to store this stash: she's not a tax payer now but (probably) will be one day and if she starts an ISA now that will accumulate tax-free for as long as ISA's are around.

clear_blu

If she decides on an ISA can I suggest that for ease of use the National Savings Cash Mini ISA is terrific. Not the highest rate at 4.7% but she gets a barcoded book of paying in slips to keep a record of payments and can deposit any amount over £10 at any Post Office.
If you want kids to save (I apologise, I know she's 16) you have to make it easy and consume as little time as possible or they will lose interest.
Its sssssoooooooo easy.......:D

Mikeyorks

gt94sss2 wrote:

To get interest paid gross, your daughter needs to fill in a R85 form and hand it into the bank/building society (who will have copies so no need to print it out)

Regards
Sunil

An increasing number of institutions will not accept a paper R85 - as they store the data electronically. You have to phone / tell them and they will then write you confirming the detail they have registered. There's a list somewhere on the HMRC site that I can never find when I specifically look for it - so you will need to ask the chosen institution which way they do it?

Wendy1_2

Thanks for all the replies everyone